Problem Set 9 (PS9)

 
Principles of Macroeconomics (Eco 200-800) SUNY-Oswego
Solutions will be posted by Fri., May 5, 2000 Ranjit Dighe

I. BY THE BOOK

A. Case & Fair (5th edition), Chapter 20: #4
B. Case & Fair, Chapter 21: #1, 3, 4
 

II. GERMANY AND JAPAN, MADE ME FEEL SO SMALL
 
Date and currency Price (US $ per unit of foreign currency) Price (foreign currency per US $)
November 1997
..... Germany (marks) $0.5948 ______________
..... Japan (yen) __________ 135.25
November 1994
..... Germany (marks) __________ 2.9886
..... Japan (yen) $0.0041098 ______________

A. Fill in the four blank spaces above. (Hint: One word -- reciprocal.)

B. 1. A Mitsubishi VCR costs 20,000 yen in Japan. How much would this TV cost in U.S. dollars in November 1997? In November 1994?
B. 2. A Dell personal computer (American) costs $1500. How much would this computer cost in Japanese yen in November 1997? In November 1994?
B. 3. A bottle of Schneider Riesling white wine costs 30 marks in Germany. How much would it cost in U.S. dollars in November 1997? In November 1994?